Until very recently investing in fine wines was considered as safe as houses, out performing gold and fine art.  Now the rarest vintages are in free fall, suffering losses almost as extreme as the housing market.  Even the great 2005 Bordeaux vintages are getting cheaper as we speak.  First growths that were selling for £10,000 a case last autumn are now £6,000.  The few city slickers who felt rich enough to shell out £5,500 for a case of Chateau La Mission Haut-Brion six months ago are gone with the wind.  Bye, bye, boys!

Predictions are that the 2008 Bordeaux may prove to be excellent, but demand is down 40% since October, and about half of the 2007 vintage is unsold because it was poor and over-priced.  Wine merchants say that there won't be any customers unless the chateaux drop their prices below the 2007 prices. They will only accept 2008 wines at the 2002 prices. That's 95 euros for the best bottles, instead of 318 euros in 2007.

Apparently, the chateaux think this is a bluff.  But according to Thierry, it isn't.  2007 was an average year, not nearly so good as the 2005, but the prices stayed high. 2005 is regarded as one of the finest vintages in recent history.  A bottle of Cheval Blanc sold for 622 euros, Chateau Margaux for 540 euros, and Chateau Haut Brion for 472 euros.  These prices continued to rise into '08. The quality of the wines didn't keep up with the prices in '06 and '07.

The wines sold through restaurants and pubs are suffering most.  All this is compounded by the fall in sterling. Thierry says that France will help the New World wines if it keeps its' prices high and forces the market to buy from the New World.

Even though nature has worked against the 2008 vintage with frost damage, a wet spring, a cool damp summer and not enough sunny autumn days, the vintage looks good.  The top 50 Bordeaux will dictate the price of the market.  But even the drinkers of plonk will benefit at the supermarkets with bargains.

Who knows maybe even we poor mortals will be drinking first growths!